This article is from the Australian Property Journal archive
THE Dubai Ruler's Court has sentenced Australians Matthew Joyce and Angus Reed to 10 years jail on fraud charges and acquitted Marcus Lee and Anthony Brearley.
The long running high profile trial concluded yesterday after Joyce and Lee were arrested back in 2009 and served nine months in jail before being placed under house arrest.
The Court has found Joyce and Reed (in absentia), guilty of fraud, abuse of public funds, breach of trust and acquiring illegal profits and commissions, over a failed land sale deal at the Dubai Waterfront project, which is owned by the Dubai government’s property company Nakheel.
The pair have been sentenced to 10 years jail and have also been ordered to repay DHS44 million and an additional fine of DHS44 million. After serving out his sentence, Joyce must pay the $AU25 million before he can be released.
In a statement, Joyce said he was shocked by the severity of the sentence.
“My family and I are still coming to terms with it. I have received 10 years’ jail, the maximum possible sentence, and a fine of $25 million, which is double the loss alleged by the prosecution.
“The most difficult part of today’s decision is that I’ve been convicted based on the evidence of a witness who was found by an Australian court to have lied. I will of course appeal this decision. I am innocent of the charges against me,” Joyce said.
In June last year, the Supreme Court of Victoria dismissed Sunland’s $14 million claim against Reed and his company Prudentia, and Joyce.
In reaching his judgement, Justice Croft said it was difficult to quantify the loss and damage Sunland has allegedly suffered because of the contradictory evidence given by David Brown the head of Sunland’s Dubai branch, and chairman Soheil Abedian.
Justice Croft said Sunland did not show evidence in support of its claim for loss and damage on this basis.
“The case in tort, relies on establishing the elements of the tort of deceit. In neither case do communications between defendants, or the defendants and non-parties, to which Sunland was not privy at any relevant time – so which could not affect the impact of any alleged conduct, including representations, on Sunland or influence in any way its reliance or otherwise on such conduct – have any relevance to its case, on either basis.
“The same applies to flows of money or any other conduct which was not within Sunland’s knowledge at the relevant time. Sunland’s attempt to rely on these matters in support of its case is merely another exercise on its part in the post hoc, ergo propter hoc fallacy,” Justice Croft said.
Sunland is appealing Justice Croft’s decision, where it alleges that Reed and Joyce tricked the company into paying $14 million for Plot D17, which the pair did not have the rights to. These alleged fraud relate to alleged bribery of $DH43 million – in the form of consultancy payments.
The Dubai Court convicted Joyce on the basis that $6 million was transferred to his offshore bank account, which the Court said was a bribery payment.
Joyce said the funds were not a bribe and were payments for past work he had completed, and future work. He has repaid the monies less the amount for the work done.
Joyce’s wife, Angela Higgins, yesterday said she was devastated.
“Our family has been through so much over the last four years, and today’s decision is much worse than I thought possible. Matt needs his family’s help now more than ever and we will be staying with him in Dubai to support him through the appeal,” Higgins said.
Australia’s Foreign Minister Bob Carr, who is in Doha for trade talks, said Australia has made extensive representations, over 53 including from the Governor General, Prime Minister Julia Gillard, to the United Arab Emirates government, but cannot directly intervene in the case.
“I think anyone would say that the nature of the evidence in respect to Mr Joyce was always more challenging for the defence team than it was for Marcus Lee, and this is subject to appeal I would imagine.
“And the second point is this: I’m advised that the court in Victoria, the case in Victoria did not deal with what is the core issue under consideration here, and that is the receipt by Mr Joyce of a sum of $6 million that he deposited in a Jersey Island bank account. He argues, I should say instantly, that that was payment from a company for work he’d done for them in the past and was expected to do for them in the future.
“But the prosecution argues that because he was employed by a government land development authority and was involved in this transaction, that money was inappropriately received and deposited by him. Now we can’t make a judgment about that. But the government-owned land development authority, Dubai Waterfront, has argued that as a result of this decision it lost a total of I think $40 million,” the Minister said.
It was a bittersweet moment for Marcus Lee, who learnt he would be set free whilst Joyce has been sentenced to jail.
Lee and his wife Julie Lee issued a statement.
“We are overwhelmed with this finding. It has been more than four years since this commenced and we are very grateful that the courts have uncovered the truth and we can now move forward.
“We are looking forward to seeing our families again and restarting our lives. We thank all those who have supported us and believed in us,” they said.
Lee’s lawyer in Australia, John Sneddon said “It will be a great day when I’m able to greet Marcus and Julie when they arrive back in Australia.”
Sneddon said the couple’s homecoming will not be as straight forward, and they must follow several steps including getting Lee’s passport back from the authorities and applying to the UAE government to remove their names from the immigration watch list.
Lee’s lawyers in Dubai, Ali Al Shamsi of Al Shamsi and Partners, said “We are delighted with this decision, as it is the right and just decision,”
“There was no evidence ever of any wrongdoing by Marcus as he was simply doing his job and as instructed by his employer, Nakheel. I just want Marcus and his wife Julie to be able to be happy again and for Marcus to be able to return to work,” Al Shamsi said.
Jumar Property Group’s managing director Rod Gilbody, a friend of Lee, told Property Review that it was upsetting it has taken this long to clear Lee’s name.
“The decision is not surprising, I don’t know Matt Joyce but I have worked with Marcus Lee for a number of years and I know him to be an honourable and honest person. There was no doubt (in my mind) that he never committed these charges.
“It is upsetting that it has taken this long to arrive at this decision. I think he and his wife will be heading home as soon as possible,” Gilbody said.
Property Review contacted Sunland’s managing director Sahba Abedian for comment.
In a statement issued to Property Review, Sunland company secretary Grant Harrison said “Sunland recognises the independence of the Emirate of Dubai and its legal system and acknowledges the outcome of the proceedings,”
Harrison said Sunland’s civil proceedings in Australia were initiated against Matt Joyce and Angus Reed and his associated company Prudentia, not Marcus Lee or Anthony Brearly.
Harrison said Sunland provided an exculpatory letter for Marcus Lee for use in Dubai.
Sunland has previously commenced proceedings in Dubai to recover DHS44 million paid to Prudentia, which was the subject of an anti-suit injunction in Australia.
Harrison said Sunland will closely review the Dubai Court’s judgment and the impact on the company’s legal rights and its outstanding legal proceedings in Australia.
Reed said in a statement, that the judgment “was a miscarriage of justice”.
“I am devastated that while the Australian courts have conclusively documented our innocence, the Dubai courts have chosen to ignore revelations that the Dubai prosecutor and court have been … misled.
“My sole concern is ensuring the safe return of Matthew Joyce. The Australian court’s findings in respect of Sunland’s communications with the Dubai prosecutor highlight that this is a gross miscarriage of justice. I call on [the] Australian government to work with the relevant Dubai authorities, so that Matthew can come home.” Reed said.
Reed is currently residing in Australia. It is unclear what are the implications for Reed following the ruling.
The UAE government could potentially apply to extradite him to Dubai to serve out the sentence.
Legal experts told Property Review that Australia and the UAE have an extradition treaty, which was passed by Parliament in 2010 supported by both sides of the house.
The treaty allows Australian and UAE authorities to extradite anyone wanted for prosecution. Under the treaty, an extraditable offence is a crime punishable under the criminal laws of both countries by a maximum penalty of at least one year in prison.
The extradition could only be refused on very limited grounds, including if there is evidence the crime involved is based on politics, or if torture is involved.
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